CEE: Use of Artificial Intelligence advances fast

Erste Bank Research Team Erste Bank

On the radar

Today, retail sales in Slovenia will be published at 10.30 AM CET.
There are no other releases scheduled in CEE, but Tuesday will be busy regarding economic data.

Economic developments

Use of Artificial Intelligence (AI) has become widespread. The increase in AI use in 2025 is quite stunning compared to the prior year (at average AI usage increased by 27% in the EU). The All enterprises regardless of size are taking advantage of AI technology, although larger firms are systematically more likely to use at least one AI technology than medium-sized and small firms. In most countries, enterprises with 250 employees or more record the highest adoption rates. Initial findings suggest AI could increase productivity, allowing work to be done faster and more efficiently. As opposed to robotization, AI and other technologies do not automate jobs as a whole, but only some skills and abilities within jobs. For example, AI can offer access to some services (legal aspects, coding) that help to scale up business at relatively low cost. Growing business can enhance employment that otherwise would not necessarily happen. However, the strongest performers are not only above the EU average but also appear to have moved further ahead, suggesting a widening digital divide between more advanced and less advanced adopters.

Market movements

CEE currencies have weakened against the euro over the last week, driven by the development of the EURUSD pair. The global geopolitical situation has stabilized, and this development has been reflected heavily in the oil price, which has declined substantially. It also triggered a positive reaction in CEE bond markets, with 10Y yields declining by 10-25bp w/w, most notably in Hungary. As far as local news are concerned, in Romania, although the political deadlock has not yet been fully resolved, a minority government is becoming the most likely scenario. The two current options for prime minister are PSD leader Sorin Grindeanu and PNL–USR–UDMR nominee Siegfried Mureșan. However, a political consensus might take more time to be reached. Hungarian Prime Minister Peter Magyar declared (after talks with Eurogroup President Kyriakos Pierrakakis) that Hungary could meet the European Union‘s economic criteria for adopting the euro by 2030,

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Erste Bank Research Team

Erste Bank

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